LLoyds bank credit card interest rule

lopsyfa

This caught me out. I used to think to avoid interest you just need to pay off last month's balance before the due date. However, Lloyds use a different condition

Interest charging information: You will not pay interest on new purchases if you pay the full balance shown on your previous and current statement on time.

For most people, this is fine if you keep paying the credit card in full every month. However, if your 0% rate has just ended, you wouldn't have paid off the credit card the previous month. Therefore, the first month after the promotional offer ends, you will be charged interest even if you pay the full balance that month. Except you factor this in when paying off the credit card.

Or if you pay the full balance on this month but your last month was not in full, you will pay interest for both months.

Ben8282

That's correctt

eco_warrior

Would have thought most cards would be the same?

lopsyfa

eco_warrior wrote: »

Would have thought most cards would be the same?

I didn’t know about it though. I used to think you pay off the previous month in full and have always done. Not pay current and previous statement in full (when the previous statement could be promotional period).

Everyday is learning day.

Ben8282

Assume we are talking about a 0% purchases promotion here.
During the promotional period, interest is still charged but at 0%.
So on the date the promotion ends, the interest rate will change.
The way to avoid this is, as you correctly say, to repay the previous statement in full.
Alternatively, don't make any new purchases in the period between the statement date and the end of the promotion, repay before the promotion ends (the full statement balance of the previous statement) and then start making new purchases.